The federal government has definitively ruled out granting major technology firms an exemption that would have permitted them to train artificial intelligence systems on copyrighted content without facing legal repercussions.

Advocates within the AI sector have urged the government to establish a tailored copyright exemption, allowing companies to utilize Australian creative works for training large language models—such as those powering ChatGPT.

Earlier this year, the Productivity Commission initiated an examination of potential legal reforms to harness the benefits of emerging technologies, noting that AI could contribute an impressive $116 billion to the Australian economy over the next ten years if new regulations do not hinder its development.

“Imposing broad regulations specifically targeting AI could cause Australia to lag, missing out on a substantial growth opportunity,” the report warned.

A controversial aspect of the interim findings was whether to introduce a “fair dealing” copyright exception to facilitate text and data mining.

It pointed to exceptions of some sort in the European Union, US, UK, Japan and Singapore, noting an Australian version would cover “not just AI model training” but also some techniques used by non-AI researchers to ingest large datasets.

“It should also be noted that a TDM exception would not be a ‘blank cheque’ for all copyrighted materials to be used as inputs into all AI models,” the commission said.

” …The use must also be considered ‘fair’ in the circumstances – this requirement would act as a check on copyrighted works being used unfairly, preserving the integrity of the copyright holder’s legal and commercial interests in the work.

“There may be a need for legislative criteria or regulatory guidance about what types of uses are likely to be considered fair.”

The PC asked for submissions on the data mining question, with a final report due later this year, but the Labor government has already made up its mind, ruling out an exception altogether.

“Artificial Intelligence presents significant opportunities for Australia and our economy, however it’s important that Australian creatives benefit from these opportunities too,” Attorney-General Michelle Rowland said in a statement released last night.

“Australian creatives are not only world-class, but they are also the lifeblood of Australian culture, and we must ensure the right legal protections are in place.

“This government has repeatedly said that there are no plans to weaken copyright protections when it comes to AI.”

Opposition Leader Sussan Ley previously made her feelings known about tech companies using data from Australian people, artists and media to train their AI models. 

“It’s not appropriate for big tech to steal and use it for their own ends without paying for it,” she said in August.

The government’s copyright and AI reference group is meeting today and tomorrow to look at ways to encourage fair, legal avenues for using copyright material in AI, clarify or update how the laws work and examine the potential for a less expensive for lower-value copyright claims 

“The tech industry and the creative sector must now come together and find sensible and workable solutions to support innovation while ensuring creators are compensated,” Rowland said.

“The government will support these next steps through the renewed focus tasked to the copyright and AI reference group.”